S&P rates Avantor BB-, ups unit

S&P said it assigned a BB- rating to Avantor Inc. and upgraded the rating on its subsidiary Avantor Funding Inc. and its first-lien debt to BB-. S&P raised the Avantor Funding’s unsecured debt rating to B. The agency said it will withdraw Avantor Funding’s issuer rating.

“The rating reflects the improving cash flow generation, despite the Covid-19 pandemic, which has depressed most of the company’s end markets such as health care, education and government, advanced technologies and applied materials. We expect revenue to grow slightly through the balance of the year with continued growth of the company’s largest end market, biopharma, and recovery of its other end markets,” S&P said in a press release.

The outlook is positive, mirroring the potential for repaying more debt as the grows and generates more cash flow, S&P said.

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